There is no doubt about it a leasehold flat or house in West Kensington is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond one hundred years to run then this decrease may be negligible however there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in West Kensington will meet the qualifying criteria; however a conveyancing solicitor will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in West Kensington with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Engaging our service will provide you enhanced control over the value of your West Kensington leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Liam, came dangerously close to the eighty-year mark with the lease on his leasehold apartment in West Kensington. Having purchased his property two decades ago, the unexpired term was of no significance. Luckily, he realised he would imminently be paying an escalated premium for a lease extension. Liam extended the lease at the eleventh hour last June. Liam and the landlord who owned the flat above ultimately settled on a premium of £6,000 . If the lease had dropped lower than eighty years, the amount would have gone up by at least £1,150.
Last April we were e-mailed by Dr Lucas Bennett , who moved into a recently refurbished apartment in West Kensington in May 2006. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Comparative premises in West Kensington with a long lease were worth £181,600. The mid-range amount of ground rent was £55 collected every twelve months. The lease finished on 20 April 2078. Considering the 52 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus costs.
An example of a Lease Extension case for a West Kensington property is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case related to 1 flat. The unexpired term as at the valuation date was 37.79 years.